A staggering $520 million in “suspected fraudulent” pandemic-era unemployment insurance payments have been returned to the state of Maryland with the help of “President Trump’s leadership” over the U.S. Department of Labor (DOL), officials said.
DOL Secretary Lori Chavez-DeRemer announced this news on Thursday, sharing that the recovery was the result of a coordinated effort between her department’s Office of Inspector General, the Employment and Training Administration, and Maryland’s Labor Department.
The CARES Act of 2020 was a major target for fraudsters during the COVID-19 era as domestic and international criminals perpetrated “a multitude of identity fraud schemes to apply for and receive unemployment insurance benefit,” the agency said in a statement obtained by Breitbart News.
“In many cases, banks were able to recognize the attempts at unemployment insurance fraud and suspend the payments,” DOL officials noted.
The $520 million frozen by financial institutions will now be allocated between Maryland and the U.S. government in proportion to how the benefits were funded.
“Under President Trump’s leadership, the Department of Labor is aggressively rooting out waste, fraud, and abuse from taxpayer-funded unemployment insurance programs and ensuring these benefits are being invested in American workers,” Chavez-DeRemer said.
She added that the recovery “is yet another win for hardworking Americans, who expect the federal government to be responsible stewards of their tax dollars.”
“I commend our Office of Inspector General, ETA, and the Maryland Department of Labor for their relentless efforts to hold bad actors accountable,” Chavez-DeRemer concluded.
Acting Deputy Inspector General Michael C. Mikulka also made a statement, lamenting how a “significant amount of pandemic UI benefits – intended to support American workers impacted by the COVID-19 pandemic – were unlawfully diverted by criminal actors using stolen identities to submit fraudulent claims.”
“The Office of Inspector General is proud to have played a role in facilitating the return of funds to the state of Maryland and eventually the U.S. Treasury,” Mikula added. “We remain committed to protecting the integrity of the U.S. Department of Labor’s programs and ensuring that critical resources reach those who need them most.”
Olivia Rondeau is a politics reporter for Breitbart News based in Washington, DC. Find her on X/Twitter and Instagram.
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